Saturday, August 18, 2012

AMERICAN Economic collapse is inevitable, here’s...Obama is just speeding it up at HYPERSPEED for his Socialist ends!! why…

America is quickly approaching a catastrophic economic collapse.
Before you dismiss this as hype or paranoia, take a few minutes to
review the facts outlined on this page. The numbers don’t lie. At this
point, the dollar crash is unavoidable… far from an exaggeration this is
a mathematical certainty. As repelling as that sounds, it’s in your own
best interest to learn just how bad the situation is.

According to the talking heads of mainstream press the economy is
slowly recovering and the financial crisis is all but behind us, but we
need a reality check. It’s time to stop being naive and start being more
discerning. Instead of more false hope, we need the truth as bitter as
it might sound… and the truth is, from our local municipalities, to our
states to our federal government, we are broke… the truth is we can’t
payback our debt without getting into even more debt… the truth is the
housing crash of 2008 was just a small preview of what’s to come.
America is drowning in debt. The government’s liabilities are now
growing at an exponential rate. Our national debt is on a vicious
downward spiral.
To our detriment our government continues to pretend that we can
borrow our way out of debt and only handful of our politicians are
willing to admit that our nation is now bankrupt.

Contrary to rhetoric coming out of Washington, no tax hike or budget cut
will get us out of this mess. The kind of measures that would actually
bring about meaningful change to curb the financial collapse are deemed
too severe to be even considered.
Examine the evidence outlined below, connect the dots and think for yourself.

All truth passes through three stages.

First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.”

– Arthur Schopenhauer

What does the “national debt” even mean?

Let’s cover the basics first… When the government can not cover its
spending using the collected revenue from corporate and income taxes and
other fees it imposes, it goes into debt. The U.S. national debt is the
sum of all outstanding debt owed by the federal government. It includes
the money government borrowed, plus the interest it must pay on this
debt.

Let’s also clear up the difference between debt and deficit. The
deficit is the shortfall we have in any one year. If you take in $100
billion and spend $130 billion, you get a deficit of $30 billion. Now at
the end of that year, you’ve got to do something with that $30 billion
you owe, so you move it over to your long-term shortfall – which is the
national debt.
Obviously, like any other debt, the national debt must be paid back
to the holders. Of course, having a little debt is just fine as long as
it’s manageable. On the other hand, if a country borrows too much it can
drown in its debt, like Greece did.
So how bad is our situation? Numbers don’t lie, so let’s compare our
debt and deficit to 1974 just to get a feel for our path and pace (later
on we’ll look at national debt chart spanning 1940-2011).
In 1974 the deficit (annual shortfall) was $4 billion and the total
debt was $484 billion. It had taken us 200 years from the start of the
republic until 1974 to create that debt of $484 billion.However, since 1974, our deficit went from $4 billion to a
shocking $1.33 trillion… stop and think about that for a second… this
means that our current annual budget shortfall is roughly triple the size of the total U.S. debt in 1974. Our national debt in 1974 was $484 billion… it is now approaching an unprecedented $16 trillion!
How is that possible? How do you go through World War I, World War
II, the Korean War, Vietnam War – and have only $484 billion debt, then
skyrocket to 16 trillion in such a short time?! The answer to this
question has to do with a key event in 1971 that we’ll go over in a
moment… for now, let’s stick with the national debt, so we can
understand why it is no longer sustainable.

In a letter to Thomas Jefferson, 1787“All of the perplexities, confusion, and distress in America arises,
not from the defects of the Constitution or Confederation, not from want of honor
or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.”
– John Adams, Founding Father

Sixteen trillion dollars, so what?

Sixteen trillion dollars is certainly a lot of money, but most people
usually don’t deal with that many zeros in their life. It’s hard to
really appreciate this almost unfathomable sum and the dire consequences
it represents for us. But to understand how deep of a hole the
government is in, we need to grasp the enormity of this dollar amount.
So, how big is one trillion? Here are a few helpful illustrations.
Imagine you decided to count to one million out loud. How long do you
think it would take you at a pace of one number per second?. If you do
it non stop, it would take about 12 DAYS. Now, how long would it take
you to count to one trillion?… The answer?… 32,000 YEARS!!!
Here’s another illustration.
If you were alive when Christ was born and you spent one million
dollars every single day since that point, you still would not have
spent one trillion dollars by now.
Last one… If you had a trillion $10 bills and you taped them
all end to end. Your money ribbon will become so long that you would
actually be able to wrap it around planet Earth more than 380 times!!!…
But, that amount of money would still not be enough to pay off the U.S.
national debt.
Are you getting the picture yet?
On the right is an illustration of our federal debt that might help
you get a better idea visually. You can click on that image to see a
larger size.
Keep in mind that what you are looking at are pallets of $100 bills
stacked on top of each other. To give you an idea of the size and height
of these pallets, in the center is standing the Statue of Liberty in
proper scale relative to the money towers. The cash surrounding and
dwarfing the Stature of Liberty taken together constitute 16.394
trillion. This represents our current debt ceiling that we’re scheduled
to hit in September of 2012.
It’s interesting to note that when we hit this debt ceiling this
year, our government will once again move the ceiling up to allow for
the debt to grow. Now ask yourself, what is the point of a movable
ceiling? A movable ceiling is an oxymoron. If you can move your debt
limit on demand, why bother pretending that you have a debt limit in the
first place?

“I see in the near future a crisis approaching that unnerves me
and causes me to tremble for the safety of my country. Corporations
have been enthroned, an era of corruption will follow, and the money power
of the country will endeavor to prolong its reign by working upon the prejudices
of the people, until the wealth is aggregated in a few hands, and the republic destroyed.”
– Abraham Lincoln, 16th President of the United States

Statistics the government would rather you didn’t know

Now that you have somewhat of an idea of how big a trillion is,
consider the chart on the right (U.S. national debt from 1940 to 2011 in
trillions of dollars) and look at the mind-boggling statistics below:

The U.S. government spent over 454 billion dollars just on interest on the national debt during fiscal 2011.

In 2011, the government borrowed $41,000 every second.

Currently, the government’s burden is growing by $10 million per each passing minute

Just during the Obama administration, the U.S. government has
accumulated more debt than it did from the time that George Washington
took office to the time that Bill Clinton took office.

Currently the U.S. monetary base is sitting somewhere around 2.7
trillion dollars. So if you went out and gathered all of that paper
money up it would only make a small dent in our national debt. But
afterwards there would be no currency for anyone to use.

The United States government is responsible for more than a third of all the government debt on the entire planet.

Mandatory federal spending surpassed total federal revenue for the
first time ever in fiscal 2011. That was not supposed to happen until 50
years from now.

If the U.S. government was forced to use GAAP accounting principles
(like all publicly-traded corporations must), the U.S. government budget
deficit would be somewhere in the neighborhood of $4 trillion to $5
trillion each and every year.

The U.S. national debt is now more than 5000 times larger than it was when the Federal Reserve was created back in 1913.

Hopefully at this point you’re starting to realize how big our debt
is and how fast it’s growing. Shockingly, our government’s biggest
liabilities are not even shown here, so this is just the tip of the
iceberg.

Another 54 trillion excluded from the national debt figures

The short video below was broadcast by CNN in 2007 featuring the head government accountant David Walker.

Click Here to see the Videohttp://youtu.be/25_APRkrXeY

According to David Walker who served as United States Comptroller
General in the Government Accountability Office from 1998 to 2008,U.S. government’s real financial burden is close to 70 trillion dollars.
This is because the national debt of 16 trillion does not account for
obligations like Social Security, Medicare, Public Employee Pensions
and other liabilities which the government is already committed to.
These liabilities are ticking time bombs, primed to explode with each
new wave of retiring baby boomers. On top of this, medical costs
continue to rise across the board driving medicare expenses through the
roof.
Keep in mind that at the time this video was broadcast our national
debt was “only” around 9 trillion dollars and it is now close to 16
trillion. The catastrophic economic problems predicted by our
government’s head accountant are playing themselves out right now.
What’s most disheartening is that David Walker was forced to accept
that admonishing Washington of unsustainable debt was a waste of effort.
His warnings of the impending financial collapse fell on deaf ears as
both administrations simply ignored him. In desperation, Mr. Walker quit
his job as the federal government’s chief auditor to travel around the
country to find ways to deliver his message directly to the public.

Father of the Constitution and The Bill of Rights, James Madison is quoted saying:“History records that the money changers have used every form
of abuse, intrigue, deceit, and violent means possible
to maintain their control over governments
by controlling money and its issuance.”
– James Madison, Founding Father and 4th President of the United States

How did we get in so much debt?

To outline all the events that lead us to this mess would take a separate article, but here’s a quick summary.
In 1913 Congress passed the “Federal Reserve Act,” relinquishing the
power to create and control money to the Federal Reserve Corporation, a
private company owned and controlled by bankers. Over time, more and
more legislation was passed to expand Federal Reserve’s functions. The
Fed (short for Federal Reserve) was granted two extremely critical
powers: the ability to purchase U.S. treasury securities and to
manipulate the interest rates. Interest rate manipulation and
quantitative easing (pumping money into the economy) by the Fed, are the
two driving forces behind the boom/bust cycles and economic bubbles.

Click Herehttp://youtu.be/YjwDrZeqM_g

The Fed was suppose to be the guardian of U.S. currency, in
reality it turned out to be a debt and bubble machine, ran for profit by
greedy bankers.Our founding fathers understood the danger
of putting the power to control the currency of a nation in the hands of
a few individuals in the form of a monopolistic central bank and were
vehemently opposed to such a system.
In 1944, as World War II was drawing closer to the end,
representatives of 44 allied nations met in Brenton Woods, New Hampshire
where the dollar (backed by gold at $35 per ounce) was accepted as the
world reserve currency.
America was granted unprecedented benefits as the issuer of the
dollar. However, the gold standard restricted Federal Reserve from
printing money unless it had the gold to backup new currency. Even
though this ensured the stability of the dollar and a strong economy,
such restrictions would not be tolerated by the Fed for very long.
In 1971, under president Nixon, U.S. moved away from a gold-backed
monetary system to a fiat paper debt-based monetary system which allowed
Federal Reserve to print dollars out of thin air.

This opened the door for unrestricted spending and borrowing.
Once we moved away from a “gold standard” to a “debt-currency system”
it was only a matter of time before America transformed from the world’s
biggest creditor to the world’s biggest debtor.If you look at the national debt chart by scrolling up, you
can see a direct parallel between the explosion of debt and U.S.
switching to fiat currency in 1971. Once the Fed could create dollars
out of nothing, it took only a few years for the government debt to gain
an exponential climb rate.
Now on the surface, Federal Reserve’s ability to print money with no
restrictions might sound great since you can just create new currency on
demand… but it carries with it two very grave consequences.
Consequences that we’re paying for now.
The first consequence is inflation. Each time the Fed issues new
dollars, it increases the money supply, which in turn diminishes the
value of the rest of the dollars already in circulation. Basically, that
means the more dollars are printed, the less they are worth. As the
inflation rises, so do the prices and cost of living. Inflation also
encourages spending and debt, and discourages saving and capital
formation. In the long run, currency inflation wipes out the wealth of
the middle class and wrecks the economy. By the way, the dollar has lost
95% of its value since Federal Reserve took over in 1913.
The second consequence is that, we (the people) go into debt every
time new money is created. When the government needs extra money, beyond
what it collects in taxes, it issues U.S. treasury bonds, which are
interest-bearing IOUs guaranteed by the government. These bonds are
exchanged with the Federal Reserve for currency. This process is called
“monetizing the debt”, hence “debt-currency” system. Federal Reserve
collects the interest and the tax payers collect the debt. The bankers
prosper and people get enslaved.
Besides debasing the dollar and binding America into debt, the Fed
manipulates the interest rates overriding market self regulation. These
manipulations create bubbles resulting in devastating consequences for
the economy and the average American.

President Andrew Jackson refused to renew the charter (a grant of
monopoly) of the Second Bank of the United States. In 1836 Jackson said
to the bankers trying to persuade him to renew their charter (so they
could continue their harmful monopoly):

“You are a den of vipers. I intend to rout you
out and by the Eternal God I will rout you out. If the people only
understood the rank injustice of our money and banking system, there
would be a revolution before morning.”
-– Andrew Jackson, 7th President of the United States

How is the U.S. government going to finance 70 trillion in liabilities?

If you have been paying attention so far, you should be able to guess
correctly… by borrowing. The U.S. government is planning to finance 70
trillion in obligations by selling treasury securities (interest bearing
IOU’s) putting America into even more debt.
Since our national debt is exploding and our annual deficit keeps
growing every year, we’re forced to admit an obvious fact: our
government can not pay its debt without taking on more debt.This is by definition, a Ponzi scheme. To keep the Ponzi
scheme going you must have a constant and ever expanding flow of
investors. If the flow stops or even slows down, the whole thing starts
to collapse. This is why the government must continuously raise the
official debt ceiling.
All Ponzi schemes eventually collapse and our debt-currency system has the same fatal flaw by design.
The video below was broadcast on CNBC, May 24, 2012:

Click on this linkhttp://youtu.be/9X6BUgLuaZs

Peter Schiff, CEO of Euro Pacific Capital, who not only famously
predicted the 2008 housing bubble, but also predicted the specific banks
that would go under, as well as the government’s exact response to the
2008 crisis, makes the following statements about U.S. treasuries (short
for U.S. treasury securities… again these are interest bearing IOU’s
the government must sell to pay for obligations):
“There’s no safety in U.S. treasuries. When interests rates go
up, we’ve got to default on those treasuries. We can’t pay a market rate
of interest, let alone retire the principal. Most of the treasuries
that are being bought have very short maturities. We have 5 or 6
trillions coming due in the next year, we can’t pay that back. We’re
counting on our creditors to loan us back the money to repay the debt.
This is a Ponzi scheme.It’s the same situation as I said Greece was in. They
had no problem selling their bonds when the rates were low. But the
minute people figured out that the Greeks couldn’t repay the debt, they
didn’t want to buy them anymore. The same thing is going to happen. You
have a false perception of safety in the Treasury market. It’s not safe
at all. It’s a trap. And it’s being set by Central Banks, the Fed is the
biggest buyer, they’re buying like 90% of long term treasuries… ”

How long can we keep borrowing?

Some economists like to imagine that we can just grow our debt
endlessly, because we have the ability to print dollars out of thin air.
These “experts” allege that the treasuries market is strong as ever and
we can just keep borrowing endlessly. These are the same “experts” that
insisted that the real estate prices will continue to rise perpetually,
right up to the 2008 crash. They argue, just raise the debt ceiling and
keep growing that debt evermore.But even though we can raise our debt ceiling time after
time, there is still a natural debt limit we can not cross. The notion
that our government can keep growing our debt without end is
preposterous.First, it’s based on a foolish assumption
that the rest of the world is willing to to lend us money that they know
we can’t pay back. Second, it ignores a mathematical consequence:
exponential growth due to interest alone.

We’ve been able to get away with borrowing so much up until now
because the dollar is the world reserve currency, but this privilege has
its limits. It’s also a privilege we’re going to lose because we have
been shamelessly abusing it.
The Federal Reserve has been keeping the interest artificially low,
to help the government keep borrowing. Of course this is no favor on
Fed’s part, because the end result is debt enslavement. Since whatever
the government owes is inherited by the people, it’s the people who get
screwed at the end. If the interest was allowed to return to market
rates, it would help prevent the government from borrowing beyond its
means.
However, at this point our lenders are realizing that our debt has
long passed a sustainable level. If you have ever applied for a loan,
you should be familiar with this universal rule: when the borrower is in
too much debt, the loan becomes high-risk and so the lender demands a
higher interest to make the reward worthy of the risk. With every
passing day U.S. plunges into a deeper debt pit and this makes lending
to U.S. (by buying treasury securities) a more and more riskier
investment.
To make things worse, the Fed is devaluing the dollar at an
increasing pace by issuing bailouts, stimulus packages, quantitative
easing, etc… and our lenders are realizing this too. This means that the
dollars that our creditors are loaning to us now, are worth less when
they get them back.For these two reasons, the U.S. treasury securities
(government IOU’s) are now high-risk, low-return investments. What was
once considered the safest investment is now a Ponzi scheme at the point
of collapse.

Who will bail out America when it runs out of lenders?

Our pool of willing lenders is starting to shrink as our creditors
are waking up to the fact that treasuries are now a high-risk,
low-return investment. To compensate for this the Fed is forced to buy
up all the long term U.S. treasuries in an effort to artificially
stimulate demand, to keep up the smokescreen. Of course this only
inflates the U.S. bond bubble even more.When the pool of willing lenders dries up, the scheme will
reach its end and the final bubble will explode. Without lenders, the
U.S. government has only two appalling choices: default on debt or
hyper-inflate the dollar.

Option one is to default on all debt, essentially declaring
bankruptcy to renegotiate all obligations. This would create a severe
financial shock as the dollar collapses and loses its status as reserve
currency. This would lead to a sharp increase in the cost of nearly
everything, as more US dollars would be needed to pay for imports,
resulting in a catastrophic economic impact for every American. The
government will be forced to cut spending dramatically. A broad range of
government payments would have to be stopped, including military
salaries, Social Security and Medicare payments, unemployment benefits,
tax refunds, etc. Companies would be crushed by a US consumer that would
no longer have any buying power. In addition, credit would dry up
virtually overnight, which would force untold numbers of companies to
shut their doors. Unemployment in the country would spike to obscene
levels. Interest rates would rise significantly forcing millions of
families with adjustable mortgages to go into foreclosures.
Option two is to have the Federal Reserve create trillions upon
trillions of dollars out of thin air. This creates an illusion that the
debt is being paid back, but in reality the dollars issued to pay the
debt would become increasingly worthless, turning rapid inflation into
hyperinflation. This would actually create a much worse scenario then
the first option as hyperinflation will be even more economically
destructive for the average American. Prices would soar to unimaginable
levels, unemployment would skyrocket. The average American would be
forced to work overtime just to put food on the table, that is if he or
she is lucky enough to still have a job.
It’s worth mentioning that it is highly unlikely that U.S. will
choose default (option one). Even though hyper-inflation is by far more
destructive for the American people in the long term, the government
will most likely try to print its way out.Either way the economy will collapse. Economically, the first
option would feel like a heart attack and the second option like a
terminal cancer.
The ripple effects of either scenario would be unprecedented. It
would not be the end of the world, but you can expect massive social
unrest, protests, riots, arson, etc. Supply disruptions on all levels.
Basic utility failures and infrastructure decay. Rampant violent crime,
specially in metropolitan areas. Eventually followed by a long and very
painful readjustment period of living standards for most Americans.

What if we cut spending, raise taxes and balance the budget?

It’s amazing, that even now, you hear the same old catch phrases
thrown around by politicians on all the major news shows, like
“recovering economy”, “budget cuts” and “responsible spending”. But,
anyone out there that insists that this crisis can be fixed under our
current system is lying.

The spending cuts and tax increases that Congress is talking about
are absolutely meaningless when compared to how rapidly our debt is
exploding.
Calling those cuts and taxes “pocket change” would be an insult to pocket change.
No bailout, stimulus package or manipulation by Federal Reserve is
going to avoid the massive financial pain that’s coming our way.So what can our government do to fix the current financial crisis and avoid the dollar crash? What would it take?
It would take the kind of measures that are our government considers
too extreme to even discuss and so there’s no chance of them being
approved. For starters we would need to abolish the Federal Reserve, go
back to the gold standard, shut down overseas military bases, completely
reform the tax code, restructure entitlement programs, etc.
Unfortunately, proposing such changes is the fastest way to lose your
political funding, become the laughing stock of Washington and be
ignored or ridiculed by the mainstream media. Just ask Ron Paul.
Our Congress knows full well that fighting against the system is
political suicide. And so no meaningful change that would help lessen
the impact of the coming crash will be approved.
As far as the oval office and Congress is concerned, postponing the
crash by issuing bailouts and stimulus packages is a more politically
favorable approach, even though this ensures an even bigger catastrophe
at the end.The bottom line is this: we’re on a path to an inevitable
dollar crash. The ones that run our monetary system and hold the keys to
our economy are actually part of the problem instead of the solution.
The ones in power that can make the desperately needed changes, dare
not.
Rather then risk their careers, they will continue to shamelessly
distribute our hard earned money among their friends on Wall Street. The
hand full of our honest politicians that are actually brave enough to
stand up for the people are shut out by the system.
At this point, we’re on a run away train without brakes, so you
better brace yourself. The good news is, there is still time for you to
prepare for what’s up ahead. Most people will be completely unprepared
when the whole thing comes crashing down.

Whether you are broke or wealthy, whether you live in an apartment or
a mansion, no matter what your current situation, there are specific
things you can do to prepare for the impeding dollar crash.
The next article we publish will focus on step by step action plan
that you can follow to minimize the impact of the financial meltdown on
you and your family. It will include practical but critical actions you
should take to protect your loved one from the ensuing chaos, along with
financial advice to safeguard whatever savings you might have.Lastly, please share this with your family and friends and
coworkers. Warn the ones you care about by emailing them the link to
this page. We need to wake our people up from their entertainment
induced comas.

ABOUT THIS BLOG

I AM A FEROCIOUS CONSERVATIVE
CONSERVATIVE RIGHT WINGER UNDERGROUND... IN EXILE IN AMERICA !
I AM AN UNRELENTING FEROCIOUS CONSERVATIVE:
Ferocious = (fə-rō'shəs) “Marked by unrelenting intensity; to the extreme”
Conservative = (kən-sûr'və-tĭz'əm) “A political philosophy or attitude emphasizing respect for traditional institutions and distrust of government activism”
My page is a place for Unrelenting Ferocious Activist Conservatives across our country to gather and discuss and plan our next moves. I am tired of sitting around and playing “nice” while the Progressive Liberals have spent the last 50 years attacking and denigrating our values and our beliefs while our side sits around and tries real hard to be accommodating and “Nice”! (Political Correctness!) NO MORE!!
AS AN UNRELENTING FEROCIOUS CONSERVATIVES. I WILL ATTACK BACK!